A recent publication from MoneyWeek said that it is too early to tell if the housing market will apply negative prices post the pandemic. ‘There is a general presumption that the reopening of the UK housing market following the pandemic freeze must be negative for house prices. But it is too early to be sure. Lucian Cook, the head of residential research at Savills, warns against jumping to any conclusions until data on transactions is available’.
The pandemic will of course dampen the views of many but should not deter potential buyers, especially first-time buyers looking to take advantage of lower rates and fees. It could also be a ‘competitive’ advantage before an influx of similar buyers re-join the market in search for their dream property. Several companies including Savills only recently announced that they have seen a dramatic uplift in property searches in preparation for the market to reopen ‘ we have seen higher unprompted web traffic than before the pandemic, while new buyer registrations, both from British and overseas buyers, have risen strongly’.